Research Analysis

Multiple research tools were used as a means of extracting information through different mediums, but also to triangulate data obtained to clarify information, identify outliers as well as validate results. Narrative Analysis was used in analysing the qualitative research in order to objectively extract trends or themes discovered (Bernard, 2000). Continual review of secondary data was also reviewed to aid and support understanding or clarification of information received during data collection. All data was entered into researcher developed excel databases and cleaned prior the running of any analysis. Specific Market Chain

Analyses were developed and are presented in this thesis to depict results from each country’s

coffee market and corresponding influences from external actors or direct government involvement.

Quantitative analysis used Descriptive Statistics and Statistical Analysis Testing to determine specific scores for respondent results from likert scale tests. Respondent results within each entrepreneurial classification and business segment were aggregated in order to determine group scores for statistical comparison of varying groups across coffee chains and between countries. Binary Logistic Regression Models were also used to better understand and compare specific quantitative data gathered and determine its probability of influencing entrepreneurship within each country. Results from these efforts will primarily be found in Sections 5.2, 5.3 and 5.4.

3.4.3 Issues

Issues and challenges were obviously encountered through this research process, and upon reflection of design and processes completed, areas for improvement have been recognized. These are addressed in the following paragraphs.

Business Segment Coding Classification

Smallholder Producer P Commercial Farmer CF

Processor Pc

Entrepreneur Classifications

Perhaps the most crucial element of this entire research process and final outcome is the classification of respondents along the Entrepreneurial Range. Admittedly, the classification relied on this researcher’s understanding and interpretation of the literature, background, contextual information within related contexts and absorption of responses. Through the research process and data collection phase, attempts for appropriate and robust due diligence in regards to classifications were made against best reliable information received. However it is recognized that some individuals may have over or under-reported activities, and while using multiple methods tried to circumvent misinformation and validate evidence, it is recognized and possible that some respondents may have been misclassified.

An additional, obvious issue remains the actual classification of respondents. As will be show in Chapter 5, Smallholder Producer respondents were able to be classified as Non- Entrepreneurs, Potential Entrepreneurs and Entrepreneurs due to the varying range of responses and unique, tangible action taken. However, other business segments (Commercial Farmers, Processors and Exporters) were only able to be classified as Entrepreneurs. While all classifications used the same parameters articulated in Figure 3.8, respondents in these business segments (Commercial Farmers, Processors and Exporters) were all classified as Entrepreneurs due to the fact that they had started new business or had built inherited businesses into new, unique phases, or had expanded operational models and business areas. Given the recent history and ‘restart’ of both countries’ coffee sectors, the majority of these current businesses were start-ups. Where businesses were inherited, current owners had shown evidence as to how they had uniquely changed business approach and model to stay competitive or remain in business. It is also recognized that tangible, entrepreneurial action was easier to perceive due to evidence of business start-up, unique product diversification or divergence into new business areas. However, it is acknowledged that this can raise questions to classification and ensuing analysis. Efforts were also made to find owners of failed businesses (or ‘failed entrepreneurs’) and while several were sourced and contacted, none were willing to participate in this research, removing potential for an additional baseline.

In-Country Challenges

As mentioned above, Ethiopia was found to be surprisingly difficult in achieving respondent willingness to participate and provide information. This was found at each stage of production, processing and export as well as with government officials. While these challenges did result in a smaller overall sample size and may have resulted in limited information gathering, it is also perceived as evidence to the enabling environment of entrepreneurial mobility (or lack thereof) and restrictive political climate and market structure and will be discussed in greater detail in Sections 6.3 and 6.4.

Rwanda, while easier in sourcing willing research participants, it was discovered that the local language, Kinyarwanda, does not have an equal translation for ‘risk’. In Kinyarwanda, the closest translation is one of ‘challenge’ or ‘problem’, which in relation to discussions about business was not acceptable. As such, distinct phraseology was used to describe risk in relation to business in the attempt to get the same idea across in a fluid and continuous manner. Risk was described as: the exposure of loss or difficulty from a chance taken in

regards to business activity.

Given Rwanda’s recent history of the 1994 genocide and the direct impact it had throughout many targeted research areas21, certain questions were avoided. Specific dynamics with group meetings and power dynamics also had to be considered and accounted for. Rwanda’s history of the 1994 war and genocide remains a strong, palpable, and to some degrees, living component very much engrained throughout society today. However, this research was not interested in the personal histories of tragedy and horror and instead chose to strategically focus on more recent business perspectives and achievements. As such, specific direct personal histories were never asked about or sought after. Questions posed focused on specific business histories, how knowledge gains occurred and involvement within the wider community. Through these settings, some respondents volunteered information about personal experiences from the war and the country’s history of conflict; others did not.

21 _{Traditionally Tutsi owned large land areas inclusive of and in some cases were heavily focused on large-scale}

coffee production. Given the high Tutsi prevalence, many of these coffee areas where research was held experienced some of the worst massacres of the 1994 genocide.

Differences in Theoretical Perspectives

Finally, different perspectives and perceptions of structure and agency, as first presented by Giddens (1984) can be found within the wider discourse to this theoretical approach of analysing entrepreneurship and can admittedly result in different options and abilities in interpreting entrepreneurship. Additionally, different theoretical perspectives have also been highlighted for building upon Shane and Venkataraman’s (2000) presentation of the

individual-opportunity nexus, other than Structuration Theory. Most suggestions have been

made for using a more critical, realist perspective, such as Archer’s (1995) proposal in analysing entrepreneurship through a realist lens in order to account for specific conditions that may be allowing entrepreneurship to occur, looking at neither structure nor agent (Mole and Mole, 2010). While the realist perspective is acknowledged as a feasible approach, this research wanted to prioritize the agent as well as the structure as a direct means of understanding entrepreneurship, and as such, was informed primarily by Structuration Theory.

Gender and Ethnicity

In its most basic form, entrepreneurship can only occur through an individual having the ability to perceive potential opportunity pursuit and the access for its tangible pursuit. However, within the specific contexts analysed, women often have unequal access to property and assets, and within certain socio-cultural settings may be restricted from leading or undertaking specific business orientated activity. This inaccessibility and related power related dynamics obviously could have implications for results and wider outcomes on entrepreneurship within these contexts.

Similarly, within the specific contexts researched, certain ethnic groups, both men and women, are believed to also have challenges related to the inaccessibility of specific opportunity pursuits or have unequal rights to property, assets or financial services; this is recognized to also have implications to assessing entrepreneurship within these specific contexts. Likewise, it would have been unethical to specifically investigate the differences in entrepreneurship or opportunity accessibility by ethnic grouping.

This study chose to not take a gendered assessment of respondents and entrepreneurs operating within the Ethiopian and Rwandan coffee sectors. However, given the focus of the study: to improve understanding of the internal construct of individuals able to take entrepreneurial action as well as how those entrepreneurs interacted within their wider operational context, this study did not implement an ethnic or gendered sampling stratification. Not specifically analysing as such is recognized as a limitation in this study. However, it should also be recognized that research investigating the impacts on entrepreneurship from the specific elements precluding women from market access is a different aim than this specific study and is one that is recommended for future research.

3.5 Conclusion

This research understands entrepreneurship as a co-evolving, interdependent, reflexive nexus of an individual and an operational context in which the context continues to influence entrepreneurial action and entrepreneurial action is believed to in turn, influence the contextual system. This chapter has looked to present the strategic approach and design for this research, in preparation for the remainder of the thesis.

Given this research approach, distinct emphasis has been placed in fully understanding individual entrepreneurs as well as the distinct operational contexts and market systems used for data collection and research analysis. In achieving this aim, the ensuing research results from this thesis are structured as follows:

 Understanding and presenting the structure of the global coffee market as well as the complex political, economic and social histories and coffee markets of Ethiopia and Rwanda, Chapter 4.

 Identifying internal characteristics, or drivers, and socio-demographic elements, in further understanding the individual construct of the entrepreneur, Chapter 5.

 Identifying the contextual operating environments, or determinants, that shape an entrepreneur’s approach, outlook and opportunity pursuit, Chapter 6.

 And finally, interpreting how the internal drivers and external determinants can be fused to reveal influences from entrepreneurial reflexivity and additionality on wider structures within a co-evolving, interdependent, entrepreneurial ecosystem, specifically within the Ethiopian and Rwanda coffee markets, Chapter 7.

Chapter 4 – Coffee and Country: A Presentation of the Global

Coffee Industry, Ethiopia and Rwanda

4.1 Introduction

Given this research purview, in order to fully define and appreciate entrepreneurial efforts and action, a solid foundation needed to be built through the firm grasp of not only operational contexts of Ethiopia and Rwanda, but also of the global coffee market and its international trade. It is important to note that as this analysis of entrepreneurship is highly contextualized. As such, results are primarily applicable to the distinct entrepreneurial actors and structures within the operational contexts of the Ethiopian and Rwandan coffee markets. As discussed in Section 2.5, the specifics of a unique operational context are critical components to the entrepreneurial outlook and action, and as such this chapter provides descriptive data to the historical overviews as well as to the economic and market evolutions for the global coffee market, Ethiopia, and Rwanda. Information presented here is in preparation for the more detailed comparative analysis of the defined determinants in Chapter 6, Sections 6.2, 6.3, 6.4 and 6.5. Additional analysis of how entrepreneurs have gone on to influence wider systems will be analysed in Chapter 7, Sections 7.3 and 7.4. This chapter is considered a part of the overall results found through this thesis, as in depth research was required for the understanding of the global coffee market and each respective country prior to the investigation into entrepreneurs; the following discussion is the by-product of that research.

For the specific countries used in this research, socio-economic and political histories, which have shaped current landscapes, are believed to have broad and wide-ranging impacts on national actors and entrepreneurs alike. This chapter is not meant as an exhaustive history, nor critique, however a sampling of the complex histories and tangled politics provides tools to appreciate analysis and results. While this research is not primarily focused on coffee, it did use the industry as a framework in which to structure research questions, house analysis and appreciate outcomes. As such, the following chapter presents market structures, institutional dynamics and related histories to provide readers tools in which to do the same.

The selected coffee markets of Ethiopia and Rwanda present ideal opportunities from which to study entrepreneurship. While coffee production volumes, histories within international markets and consumer recognition can be considered polar opposites; both countries have re- emerged from similar historical and economic platforms over the past two decades. Needing to revitalize nearly lost private sectors, each has taken distinctly different paths from which to maximize domestic industries and economies. Following the evolutions of both sectors since the 1990s, each country has diverged down differing paths of market openness and focus with Rwanda slowly establishing a liberalized coffee market focused on specialization, and Ethiopia managing a stifled, non-liberalized sector geared towards commercialization.

These respective positions offer unique launching pads in which to investigate, test and analyse entrepreneurs operating in liberalized and non-liberalized markets. As such, this chapter presents:

1. An overview of the global coffee industry as an explanation to the different